diff --git a/packages/@angular/cli/blueprints/ng2/files/angular-cli.json b/packages/@angular/cli/blueprints/ng2/files/angular-cli.json
index 8a57d08bac51..a080fc378b1a 100644
--- a/packages/@angular/cli/blueprints/ng2/files/angular-cli.json
+++ b/packages/@angular/cli/blueprints/ng2/files/angular-cli.json
@@ -11,6 +11,7 @@
         "assets",
         "favicon.ico"
       ],
+      "bundlesOutDir": ".",
       "index": "index.html",
       "main": "main.ts",
       "polyfills": "polyfills.ts",
diff --git a/packages/@angular/cli/lib/config/schema.json b/packages/@angular/cli/lib/config/schema.json
index c3c3ad42cef6..261e5defee6a 100644
--- a/packages/@angular/cli/lib/config/schema.json
+++ b/packages/@angular/cli/lib/config/schema.json
@@ -71,6 +71,10 @@
             },
             "default": []
           },
+          "bundlesOutDir": {
+            "type": "string",
+            "default": "."
+          },
           "deployUrl": {
             "type": "string",
             "description": ""
diff --git a/packages/@angular/cli/models/webpack-configs/common.ts b/packages/@angular/cli/models/webpack-configs/common.ts
index 81829a3b3a68..5c20b33050d6 100644
--- a/packages/@angular/cli/models/webpack-configs/common.ts
+++ b/packages/@angular/cli/models/webpack-configs/common.ts
@@ -3,8 +3,13 @@ import * as path from 'path';
 import { GlobCopyWebpackPlugin } from '../../plugins/glob-copy-webpack-plugin';
 import { packageChunkSort } from '../../utilities/package-chunk-sort';
 import { BaseHrefWebpackPlugin } from '../../lib/base-href-webpack';
-import { extraEntryParser, lazyChunksFilter, getOutputHashFormat } from './utils';
 import { WebpackConfigOptions } from '../webpack-config';
+import {
+  extraEntryParser,
+  lazyChunksFilter,
+  getOutputHashFormat,
+  getBundleOutputPath,
+} from './utils';
 
 const autoprefixer = require('autoprefixer');
 const ProgressPlugin = require('webpack/lib/ProgressPlugin');
@@ -96,18 +101,32 @@ export function getCommonConfig(wco: WebpackConfigOptions) {
     output: {
       path: path.resolve(projectRoot, buildOptions.outputPath),
       publicPath: buildOptions.deployUrl,
-      filename: `[name]${hashFormat.chunk}.bundle.js`,
-      chunkFilename: `[id]${hashFormat.chunk}.chunk.js`
+      filename: `${appConfig.bundlesOutDir}/[name]${hashFormat.chunk}.bundle.js`,
+      chunkFilename: `${appConfig.bundlesOutDir}/[id]${hashFormat.chunk}.chunk.js`
     },
     module: {
       rules: [
-        { enforce: 'pre', test: /\.js$/, loader: 'source-map-loader', exclude: [nodeModules] },
-        { test: /\.json$/, loader: 'json-loader' },
-        { test: /\.html$/, loader: 'raw-loader' },
-        { test: /\.(eot|svg)$/, loader: `file-loader?name=[name]${hashFormat.file}.[ext]` },
+        {
+          enforce: 'pre',
+          test: /\.js$/,
+          loader: `source-map-loader?name=${getBundleOutputPath(appConfig)}`,
+          exclude: [nodeModules]
+        },
+        {
+          test: /\.json$/,
+          loader: `json-loader?name=${getBundleOutputPath(appConfig)}`
+        },
+        {
+          test: /\.html$/,
+          loader: `raw-loader?name=${getBundleOutputPath(appConfig)}`
+        },
+        {
+          test: /\.(eot|svg)$/,
+          loader: `file-loader?name=${getBundleOutputPath(appConfig, hashFormat)}`
+        },
         {
           test: /\.(jpg|png|gif|otf|ttf|woff|woff2|cur|ani)$/,
-          loader: `url-loader?name=[name]${hashFormat.file}.[ext]&limit=10000`
+          loader: `url-loader?name=${getBundleOutputPath(appConfig, hashFormat)}&limit=10000`
         }
       ].concat(extraRules)
     },
diff --git a/packages/@angular/cli/models/webpack-configs/styles.ts b/packages/@angular/cli/models/webpack-configs/styles.ts
index 532b0c8c99ed..a1c8d341ec47 100644
--- a/packages/@angular/cli/models/webpack-configs/styles.ts
+++ b/packages/@angular/cli/models/webpack-configs/styles.ts
@@ -161,7 +161,7 @@ export function getStylesConfig(wco: WebpackConfigOptions) {
     plugins: [
       // extract global css from js files into own css file
       new ExtractTextPlugin({
-        filename: `[name]${hashFormat.extract}.bundle.css`,
+        filename: `${appConfig.bundlesOutDir}/[name]${hashFormat.extract}.bundle.css`,
         disable: !buildOptions.extractCss
       }),
       new webpack.LoaderOptionsPlugin({
diff --git a/packages/@angular/cli/models/webpack-configs/utils.ts b/packages/@angular/cli/models/webpack-configs/utils.ts
index e44e4d34b00b..c85a93943a9b 100644
--- a/packages/@angular/cli/models/webpack-configs/utils.ts
+++ b/packages/@angular/cli/models/webpack-configs/utils.ts
@@ -86,3 +86,19 @@ export function getOutputHashFormat(option: string, length = 20): HashFormat {
   /* tslint:enable:max-line-length */
   return hashFormats[option] || hashFormats['none'];
 }
+
+export function getBundleOutputPath(
+  appConfig: any,
+  hashFormat?: HashFormat,
+): string {
+  let result = '';
+  if (appConfig.bundlesOutDir !== '.') {
+    result += `${appConfig.bundlesOutDir}/`;
+    if (hashFormat) {
+      result += `[name]${hashFormat.file}.[ext]`;
+    } else {
+      result += `[name].[ext]`;
+    }
+  }
+  return result;
+}
diff --git a/tests/e2e/tests/misc/bundles-output-path.ts b/tests/e2e/tests/misc/bundles-output-path.ts
new file mode 100644
index 000000000000..df04e7a4b58e
--- /dev/null
+++ b/tests/e2e/tests/misc/bundles-output-path.ts
@@ -0,0 +1,12 @@
+import { updateJsonFile } from '../../utils/project';
+import { expectFileToExist } from '../../../utils/fs';
+
+export default function() {
+  return Promise.resolve()
+    .then(() => updateJsonFile('.angular-cli.json', configJson => {
+      configJson.apps[0].bundlesOutDir = 'bundles';
+    }))
+    .then(() => ng('build', '--output-hashing=none'))
+    .then(() => !expectFileToExist('dist/main.bundle.js'))
+    .then(() => expectFileToExist('dist/bundles/main.bundle.js'));
+}